Gold rises as US dollar weakens

CHICAGO: Gold futures on the Comex division of the New York Mercantile Exchange rose on Thursday as the US dollar and US Treasury bond yields weakened.

The most active gold contract for June delivery rose $13.20, or 0.67 percent, to close at $1,997.70 per ounce.

Gold closed at the highest level since March 10, 2022.

Speaking at a conference hosted by the National Association for Business Economics, Boston Fed President Susan Collins said Thursday she expects the US central bank to implement one more quarterpoint rate rise in its battle against high inflation despite lingering concerns about the stability of the banking system.

“I currently anticipate some modest additional policy tightening, and then holding through the end of this year,” she said.

Economic data released Thursday also supported gold. The US Commerce Department reported that US real gross domestic product increased at an annual rate of 2.6 percent in the fourth quarter of 2022 after increasing 3.2 percent in the third quarter.

The US Labor Department reported that US initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 198,000 for the week ending March 25, a three-week high.

Silver for May delivery rose 52.30 cents, or 2.23 percent, to close at $23.989 per ounce. Platinum for July delivery rose $19.50, or 2 percent, to close at $996.90 per ounce.